Over the range of output for which the average product of labor curve is negatively sloped, the average variable cost curve is positively sloped

Refer to Figure 9-1. Based on the graph of the labor market above, if a minimum wage of $8 per hour is imposed, which of the following will result?

A) The quantity of labor demanded by firms will rise. B) The quantity of labor demanded by firms will fall. C) The unemployment rate will fall. D) Both A and C will occur.

The actual division of the burden of a tax between buyers and sellers in a market is called

A) tax parity. B) tax incidence. C) tax bearer. D) tax liability.